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Author Question: Why is the aggregate demand curve downward sloping while the aggregate expenditure line is upward ... (Read 123 times)

penguins

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on: Jun 29, 2018
Why is the aggregate demand curve downward sloping while the aggregate expenditure line is upward sloping?
 
  What will be an ideal response?

Question 2

Refer to Figure 27-10. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?
 
  A) buy Treasury bills B) increase income taxes
  C) increase government spending D) decrease the discount rate


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javimendoza7

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A downward-sloping aggregate demand curve reflects the inverse relationship between the price level and the level of planned aggregate expenditure, while an upward-sloping aggregate expenditure line reflects the positive relationship between real GDP and aggregate expenditure.

Answer to Question 2

B


penguins

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Reply 2 on: Jun 29, 2018
Gracias!

ashely1112

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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